How has COVID-19 affected how we do real estate transactions?
Since the Governor of Indiana has deemed real estate an essential business, we are continuing to serve buyers and sellers as usual, but with a handful of new procedures to ensure the safety of our agents and clients.
The news that we would be able to continue doing business as usual was a huge relief, but the added responsibility of maintaining the health and safety of everyone involved was overwhelming. However, thanks to the ingenuity and adaptability of our real estate agents, mortgage companies, banks and title companies, we have implemented safe, effective ways of conducting business. We have been performing our new “normal” routines for a couple of weeks now and haven’t missed a beat!
For starters, our physical office is closed to the public. We have a limited staff working in the office on a daily basis and they are required to follow CDC-recommended safety precautions, including washing their hands frequently and wearing gloves. We are utilizing Zoom and FaceTime to perform all team meetings, and communicating through emails, phone calls and scans. The agents have gotten used to working away from the office and, with the exceptions of listings, showings and closings, can perform all necessary tasks from the safety of their own homes
Here is how our office is handling the buying, selling, and closing side of the business during the last month (although it feels like longer!) of COVID-19.
Showing a Property:
Most of our listings have extensive pictures and virtual tours which allows buyers to browse homes from the comfort of their own. We are encouraging buyers to access all of these online resources and do a drive-by of the home.
As usual, buyers have to be pre-approved for the property before previewing it, and we are asking that sellers be out of the house during the time of the showing. Before the seller leaves, we ask them to open bedroom doors and turn on all the lights so that we, and the potential buyer, can avoid unnecessarily touching doorknobs and light switches.
We are also not touching anything in the home while showing it and asking the buyer to do the same. If they decide to make an offer, we put together contracts online with electronic signatures so that there is no physical interaction.
Listing a Property:
Many sellers are opting to wait until the pandemic subsides to list their homes, hopefully in late spring or early summer. However, there are still sellers that absolutely need to sell now. Surprisingly, we have listed a fair amount of homes throughout March and April, some of which have sold just as quickly as they would have without the quarantine or stay-at-home order. This was a surprise to me at first, but it makes sense. In the months leading up to COVID-19 supply was low and demand was high. People are continuing to move and buyers who have been facing the lack of inventory are more than willing to make an offer on a new listing that’s accurately priced for the market.
When listing a home, we are not currently meeting face to face with the seller. We talk to the seller on the phone and arrange a time to go to the home when they will not be there. At that time, we take pictures, film a video tour and get all of the information needed to complete the listing. We then communicate everything to the seller over phone and email, including our marketing plan, listing price, and their final net proceeds. Once they agree, the paperwork is signed electronically. If we are ordering professional pictures, video walkthroughs and/or drones, we schedule that within a few days of visiting the home and again ask that the seller not be present. All showings are scheduled with pre-approved buyers and we ask the buyer’s agent and potential buyers to refrain from touching anything when touring the home.
Closing a Home:
Aside from inspections and appraisals, closings have remained mostly unchanged since most of the communication with the lenders and title companies is always via email and phone. One substantial difference during closing is the suspension of face-to-face meetings between buyers and sellers. Instead, the seller will either sign electronically or sign “curbside” at the title company by themselves, whereas the buyer signs “curbside” due to lender/title company requirements. Interestingly enough, we’ve learned that a lot of states always close with the buyer and seller separately. Since the implementation of the new system, I have been told many times by both buyers and sellers that they would rather close in a separate room or at a different time.
Bottom line, I am amazed at how everyone has shifted and embraced our adapted business practices and continue to put the needs of the buyers and sellers first. We have taken the traditional methods of real estate, an age-old business, and changed them to meet the needs of the times. I think that when this all ends, which it surely will, we will look back and perhaps decide to adopt some of the new procedures that we have put in place. I am thankful to work within an industry that is constantly improving, advancing and evolving.